UK customer satisfaction hits nine-year low

LONDON, UNITED KINGDOM — The latest UK Customer Satisfaction Index (UKCSI) for January 2024 has unveiled a concerning decline in customer satisfaction across the nation, marking a nine-year low.
The Index, a comprehensive measure of customer satisfaction across 287 organizations in 13 sectors, has dropped to 76.0 out of 100. This represents a decrease of 1.7 points from the previous year and is 2.4 points below the level recorded in January 2022.
All 13 sectors monitored by the UKCSI experienced a downturn in customer satisfaction, with the utilities, transport, insurance, and services sectors witnessing declines of more than two points.
The report also highlighted the significant impact of customer satisfaction on business outcomes. Approximately 28% of customers who rated an organization 9 or 10 out of 10 for customer satisfaction indicated they would increase their purchases from the same company.
Conversely, 21% of those who rated an organization between 1 and 4 stated that their experience had negatively affected their trust.
Technology’s role in shaping customer experiences was another critical finding, with 35% of customers reporting that the positive use of technology by an organization led them to repeat business.
Meanwhile, a staggering 45% said poor technology use had deterred them from engaging with an organization again.
The decline in customer satisfaction comes at a time when businesses are navigating a challenging economic landscape marked by rising costs and evolving consumer expectations.
The UKCSI report underscores the necessity for organizations to prioritize customer service and adapt to changing customer needs to remain competitive.
Jo Causon, CEO of The Institute of Customer Service, emphasized the strategic importance of customer service, stating, “Customer satisfaction is closely connected to trust.”
“When customers trust an organization, they are more likely to engage with new products and services, give positive feedback, and when a problem occurs, give an organization the opportunity to put things right,” Causon added.
She further highlighted the widening gap between businesses excelling in customer service and those falling behind, underscoring the direct impact of service quality on an organization’s bottom line.